•
Sep 30, 2023

Synchrony Q3 2023 Earnings Report

Synchrony's financial performance demonstrated strength with consistent growth and strong risk-adjusted returns, driven by broad-based purchase volume and receivables growth.

Key Takeaways

Synchrony Financial reported Q3 2023 net earnings of $628 million, or $1.48 per diluted share. Purchase volume increased by 5% to $47.0 billion, and loan receivables increased by 14% to $97.9 billion. The company returned $254 million of capital to shareholders, including $150 million in share repurchases.

Purchase volume increased 5% to $47.0 billion.

Loan receivables increased 14% to $97.9 billion.

Average active accounts increased 6% to 70.3 million.

Net interest margin decreased 16 basis points to 15.36%.

Total Revenue
$4.36B
Previous year: $3.93B
+11.0%
EPS
$1.48
Previous year: $1.47
+0.7%
Net Interest Margin
15.36%
Previous year: 15.52%
-1.0%
Purchase Volume
$47B
Previous year: $44.6B
+5.4%
Average Active Accounts
70.3M
Previous year: 66.3M
+6.0%
Cash and Equivalents
$12.7B
Previous year: $20.3B
-37.4%
Total Assets
$109B
Previous year: $101B
+7.9%

Synchrony

Synchrony

Forward Guidance

Synchrony is confident in their ability to execute on key strategic priorities and drive market leading returns over the long-term, leveraging core strengths such as advanced data analytics, disciplined underwriting, and a stable funding model.

Positive Outlook

  • Prioritizing sustainable growth at appropriate risk-adjusted returns.
  • Selectively investing to meet the increasingly digital demands of customers.
  • Advanced underwriting capabilities.
  • Digital-first servicing strategy.
  • Stable funding model.

Challenges Ahead

  • Changing market conditions.
  • Gradual normalization of credit performance.
  • Impact of credit normalization.
  • Higher net charge-offs.
  • Higher reserve build.